Accounting Information Systems;  Quickbooks 2015: A Complete Course (without Software); Access Card For Intuit Quickbooks 2015 (13th Edition)
Accounting Information Systems; Quickbooks 2015: A Complete Course (without Software); Access Card For Intuit Quickbooks 2015 (13th Edition)
13th Edition
ISBN: 9780134404080
Author: Marshall B. Romney, Paul J. Steinbart
Publisher: PEARSON
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Chapter 14, Problem 1CQ
To determine

Identify the correct option for the given statement.

Expert Solution & Answer
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Answer to Problem 1CQ

Option “a”

Explanation of Solution

Product design is a first process in the production cycle and it has objectivity to create a product with customer requirement in terms of quality, durability and functionality. Generally, product design drives up the cost in several ways, because unique components of the similar product would increase the cost of product by the purchase and maintenance cost of raw material inventories. At the same time, excessive complexity in the production process would incur more warranty and repair costs. Hence, the product design has locked most costs in the production cycle.

From the above explanation it is clear that “option b, c and d” are incorrect options and option “a” is a correct answer.

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